Dems admit mistakes to PDC

The Washington Democratic Party may face thousands of dollars in fines for failing to file timely reports for the 2004 election.

In addition to those fines, the party could be required to repay a $100,000 fine that was suspended in 2003 as long as the Democrats didn't have any serious campaign-finance infractions during the next five years.

In a letter to the state Public Disclosure Commission (PDC), state Democratic Party Chairman Paul Berendt admitted mistakes were made by party staff members. Late last summer, he said, the party transferred $394,000 from a federal account to a state account, but individual donor-contribution data were not disclosed, in violation of state rules.

The commission said that in October, a form was electronically filed by the Democrats for the state account, indicating the deposit of $394,000, but no individual contributors were disclosed in the report. The individual contributors weren't disclosed until Jan. 24, 104 days late.

The commission will investigate the latest complaint and, if the party is found in violation, the reimposition of the $100,000 fine will be automatic, PDC spokesman Doug Ellis said. He said the violations are so serious they will be referred to the Attorney General's Office for possible prosecution. The party could face fines of $10,000 for each violation.

Berendt said the state party hired an accountant to go through all state and federal reports for 2004 to verify their accuracy.

"I am deeply disappointed and concerned about the delay in transferring the donor information from the federal reports to the state reports," he said in his letter, "and, worse, that my staff did not alert me to the problem or provide accurate and ongoing communication with your office about the issue."

Two years ago, in the largest campaign-disclosure fine imposed against a political party in Washington, the Democrats were assessed $150,000 for failing to properly disclose about $7 million worth of campaign donations and expenditures during the 2000 election.

Under a 2003 deal with the state Attorney General's Office, the Democrats agreed to a $250,000 fine, of which $100,000 was suspended if the party remained free of serious infractions for five years.

According to the PDC, the party also failed to file reports on nearly $900,000 in debts before the 2004 general election.

Berendt said he's never known the PDC to take enforcement action on the nonreporting of debt. "It should have been reported, and I don't feel good about it, but I'm not aware of [the PDC] ever taking action."

Susan Gilmore: 206-464-2054 or sgilmore@seattletimes.com